Android dominates Apple, eats into mobile market

Yeah! An objective Android article. The last sentence is important ... what I've been saying for a long time. That is where the likes of Samsung have a huge edge. The internet of everything. Android is gaining a strong footing in this future as Android is covering a wide spectrum (already). My money is on Android. The other OS's are still too focused on specific market segments and products whilst Android is entering other realms ... expanding into all kinds of things. The numbers are coming in ... and Android is growing at a phenomenal pace. But there will always be those (here) that will deny this and come up with "algorithms" to show why the numbers don't work (it is always supposed to be in Apple's favor).
 
Android is definitely messing me around!

Was hellbent on getting a Microsoft Surface tablet, but now the Nexus 10 is just looking too good to miss out on.

And reviewers are absolutely raving about the Nexus 4....another winner for Android.
 
Yeah! An objective Android article. The last sentence is important ... what I've been saying for a long time. That is where the likes of Samsung have a huge edge. The internet of everything. Android is gaining a strong footing in this future as Android is covering a wide spectrum (already). My money is on Android. The other OS's are still too focused on specific market segments and products whilst Android is entering other realms ... expanding into all kinds of things. The numbers are coming in ... and Android is growing at a phenomenal pace. But there will always be those (here) that will deny this and come up with "algorithms" to show why the numbers don't work (it is always supposed to be in Apple's favor).

This is also one thing I have noticed, while other OS's try to recapture the Mobile Phone market Android been busy expanding at one hell of a rate. From TV's to TV Media Boxes, Android watches, PC's, Home atomization, Car dashboards, fridges and whatnot. Basicly everywhere Microsoft once where king (WindowsCE) is up for the take.

See this article written back in May

Just when Windows 8 is looming ever larger as perhaps a credible competitor to iOS and the iPad, we're finally starting to see some Android action in vertical market tablets and handhelds. It's timid, exploratory action still, but nonetheless a sign that the industry may finally break out of the stunned disbelief as Apple was first selling millions and then tens of millions of iPads.

What has changed? Perhaps it's the fact that it's becoming increasingly harder to argue against Android as a serious platform now that Google's OS dominates the smartphone market. Though it seems more fragmented than ever, Android is now on hundreds of millions of smartphones, and all of them are little mobile computers much more than phones. The fragmentation is certainly an issue as is the large variety of mobile hardware Android runs on, but it's also a trend and sign of the time. Cisco recently published the results of a study which showed that 95% of the surveyed organizations allowed employee-owned devices, and more than a third provided full support for them. It's called the "Bring Your Own Device" syndrome, and for Cicso it was enough to ditch its own Cius tablet hardware. What it all means is that people will want to use what they own, know and like, and in tablets and handhelds that's iOS and Android.

There's also been movement on the legal front. Oracle had been suing Google for patent infringement over some aspects of Android, and since Oracle is a tenacious, formidable opponent in whatever they tackle, this cast a large shadow over Android. Well, Google won, for now at least, when a jury decided Google had not infringed on Oracle's patents.

So what are we seeing on the Android front?

Well, there's DRS Tactical Systems that just announced two new rugged tablets with 7-inch capacitive touch displays. They look almost identical, but they are, in fact, two very different devices. One runs Android, one Windows, and DRS made sure the hardware was fully optimized for each OS, with different processors, different storage and different controls. That's costly, and it shows that DRS sees Android as having just as much of a chance to be the platform of choice in mobile enterprise applications as does Windows.

There's Juniper Systems which revealed that its unique 5.7-inch Mesa Rugged Notepad will soon be available in an Android version called the RAMPAGE 6, courtesy of a partnership with Pennsylvania-based SDG Systems. The Juniper Mesa is powered by the ubiquitous Marvell PXA320 processor. If the Android version uses this same chip, we'd finally have an answer to the question whether the PXA processors that have been driving Pocket PCs and numerous industrial handhelds for a decade can run Android (we asked Marvell several times, to no avail).

The folks at ADLINK in Taiwan have been offering their TIOT handheld computer in two versions since late 2011; the TIOT 2000 runs Android, the identical-looking TIOT 9000 Windows CE. Here, though, the Android model runs on a Qualcomm processor whereas the Windows CE model has a Marvell PXA310.

General Dynamics Itronix has been playing with Android for a couple of years now, demonstrating their Android-based GD300 wearable computer to military and other customers. Panasonic introduced their Toughpad to great fanfare at Dallas Cowboy Stadium in November of 2011, but though the rather impressive tablet seemed ready back then, it actually won't start shipping until summer of 2012. Motorola Solutions also announced an Android tablet late in 2011, but I am not sure if the ET1 Enterprise Tablet is in customer hands yet.

Mobile computing industry veterans may recall that there was a similarly confusing era several technology lifetimes ago: back in the early 1990s the upstart PenPoint OS platform came on so strong that several major hardware companies, including IBM, shipped their tablets with PenPoint instead of Microsoft's unconvincing pen computing overlay for Windows. Microsoft, of course, eventually won that battle, but Microsoft's "win" also demoted tablets back into near irrelevance for another decade and a half. Will it be different this time around? No one knows. Microsoft dominates the desktop, as was the case back then. But unlike PenPoint which despite its hype was known only to a few, hundreds of millions are already familiar with Android.

The next six months will be interesting.

Also increasing is
http://iservicesblog.advantech.eu/IServiceBlog/2012/03/21/androids-move-industrial-market/
http://www.e-consystems.com/blog/android/?p=457
 
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All these Android devices and yet only one company can make any money off of it. Strange.
 
Android is definitely messing me around!

Was hellbent on getting a Microsoft Surface tablet, but now the Nexus 10 is just looking too good to miss out on.

And reviewers are absolutely raving about the Nexus 4....another winner for Android.

Nexus4 looks great; I'm seriously making plans to get one. In fact the Nexus devices are pretty much coming to dominate the face of Android. Nexus7 is the best 7 incher, Nexus10 is the best 10 incher, and Nexus4 is.. well if not the best, at least the best priced smartphone on the market for the specifications.
 
All these Android devices and yet only one company can make any money off of it. Strange.

The Android strategy is a longer term one and it is not hardware focused. It is about getting devices out everywhere as affordable as possible ... and then build income generation mechanisms on top of that universal platform. That is what Nexus is all about. Google is playing a very different game. Apple's primary income is on making as much profit on hardware as possible (and then on apps, etc). Google will give hardware away for free if it was possible to get their ecosystem everywhere. They will build on top of that foundation in time. Samsung makes money from hardware (like Apple) because they are very efficient and offer top quality devices with some differentiation (more features, higher specs, etc). The rest are just hanging on ... why HTC had to make a deal with Apple (which may have the unintended outcome of getting Apple off Samsung's back). Android is given away for free. That should tell you what Google is up to.
 
It's pretty clear what Google's strategy is. The question is how successful it is? Longer term; how longer term? Another 3 years, 5 years, before it starts generating profit for Google? And HTC, Sony et al must 'hang on' in the meantime; allowing Google to cannibalize their sales with bottom-rack top-spec Nexus branded devices? It works for the consumer who gets some crazily priced hardware; have you yet bought any real content from the Google stores though? And how much longer can the likes of HTC hang on for do you think?

I kind of think that a bit of tree-shaking is imminent on the Android front. Some players just can't sustain prolonged losses indefinitely. Even Google eventually are going to have to become answerable to shareholders' demand for a tangible ROI. At what point do they stop being content to be Samsung's moneymonkeys?
 
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I believe Google will do whatever is needed to keep as many OEM's on-board as possible, but only up to a point. Google has a vision with Android and those that are with them will be looked after; the rest must go wherever the currents may take them. It seems very likely that HTC will go the Windows route. Asus and Samsung seems happy in the Google camp (despite also offering Widows products). If there wasn't a convincing enough strategy from Google then all the OEM's would have jumped ship long ago as no-one will keep on losing money (no ROI). I'm sure Google is getting closer to switching on the lights (everything to date was prep work). The multi-stream Nexus launches seems to indicate that the eventual plan will soon become clear and then we will understand why the OEM's stood by Google despite poor ROI. Google is a very smart company. I had major issues with them at some point, but I can now see their strategy and it makes a lot of sense. It's about connecting everything (people with people, people with stuff, and stuff with stuff) and not about selling phones/tablet for profit. The OEM's that can participate in this bigger picture will remain committed. The rest (that relies on hardware sales for profit) will jump ship (HTC, etc). Google will know everything. The big brain that has probes (eyes/ears) everywhere. That is the platform that will generate money in future. Knowledge money, not hardware money.
 
It's pretty clear what Google's strategy is. The question is how successful it is? Longer term; how longer term? Another 3 years, 5 years, before it starts generating profit for Google? And HTC, Sony et al must 'hang on' in the meantime; allowing Google to cannibalize their sales with bottom-rack top-spec Nexus branded devices? It works for the consumer who gets some crazily priced hardware; have you yet bought any real content from the Google stores though? And how much longer can the likes of HTC hang on for do you think?

I kind of think that a bit of tree-shaking is imminent on the Android front. Some players just can't sustain prolonged losses indefinitely. Even Google eventually are going to have to become answerable to shareholders' demand for a tangible ROI. At what point do they stop being content to be Samsung's moneymonkeys?

Maybe this will help you understand Google's Business. In short you are the product not the customer.

Search Is Google's Castle, Everything Else Is A Moat

Google is moving in many directions—mobile, browsers, productivity apps, operating systems, social. At first glance, it may seem like it is trying ever so hard to move beyond its giant one-trick pony: search. What people keep forgetting is that it is a pretty good trick. Benchmark Capital VC Bill Gurley reminds us how good this trick is in an excellent post that looks at Google’s market expansion strategy not as one of a series of aggressive offensives, but rather a highly defensive strategy.

Warren Buffet famously describes the best businesses as “economic castles protected by unbreachable ‘moats.’” Search is Google’s economic castle (perhaps with other forms of online advertising such as display thrown in there), and everything else is a moat trying to protect that castle. Android is a moat. The Chrome browser is a moat. The Chrome OS is a moat. Google Apps is a moat. These are all free products, subsidized by search profits, that are intended to protect the economic castle that is search.

Gurley goes further and says not only does Google build moats around itself, but then it scorches the earth surrounding the moat:
So here is the kicker. Android, as well as Chrome and Chrome OS for that matter, are not “products” in the classic business sense. They have no plan to become their own “economic castles.” Rather they are very expensive and very aggressive “moats,” funded by the height and magnitude of Google’s castle. Google’s aim is defensive not offensive. They are not trying to make a profit on Android or Chrome. They want to take any layer that lives between themselves and the consumer and make it free (or even less than free). Because these layers are basically software products with no variable costs, this is a very viable defensive strategy. In essence, they are not just building a moat; Google is also scorching the earth for 250 miles around the outside of the castle to ensure no one can approach it. And best I can tell, they are doing a damn good job of it.

Remember, what is the default search engine of Android and Chrome? It’s Google. Android and Chrome are merely distribution nodes feeding into search. Without Android, Google would be more vulnerable to becoming displaced as the default search engine on mobile phones. The Chrome browser similarly keeps Google search front and center, just in case Firefox ever decides to go with Bing.

But the way that Google creates its moats, ravages the industries it enters because it offers it products for free or less than free. Carriers and cell phone manufacturers actually have an economic incentive to use Android. Google is essentially paying them to adopt it.

So don’t measure the success of Google’s new businesses by how much revenue or profit they generate directly. Measure it by how much they shore up Google’s core search business.
Source: http://techcrunch.com/2011/03/25/search-googles-castle-moat/

Another interesting read is http://www.gurufocus.com/news/189543/googles-moat--10-billion-wont-cut-it-warren

Android is just another section of this moat.
 
So Apple's fairly transparent business model of hardware profitability driven by repeat business of desirable high-end products is doomed to fail, whereas Android's oblique backdoor data-peddling nobody-really-knows-where-the-money-comes-from model is going to end up winning eventually? Really? And we should be happy about this?
 
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So Apple's fairly transparent business model of hardware profitability driven by repeat business of desirable high-end products is doomed to fail, whereas Android's oblique backdoor data-peddling nobody-really-knows-where-the-money-comes-from model is going to end up winning eventually? Really? And we should be happy about this?

Why wouldnt you be happy? Its not like one is gathering any more data than the other. Its just that Googles one is pretty much supported by their marketing budget, not some unknown american terrorist organisation.
 
So Apple's fairly transparent business model of hardware profitability driven by repeat business of desirable high-end products is doomed to fail, whereas Android's oblique backdoor data-peddling nobody-really-knows-where-the-money-comes-from model is going to end up winning eventually? Really? And we should be happy about this?

What do you mean eventually?
Android already has over 70% of the market share, It is "winning", not "going to win". The market is already flooded, hell my maid just got a new Samsung Galaxy Pocket. Go try that with iOS.
 
What do you mean eventually?
Android already has over 70% of the market share, It is "winning", not "going to win". The market is already flooded, hell my maid just got a new Samsung Galaxy Pocket. Go try that with iOS.

by winning obviously I meant what the tenor of our previous debate was about; become profitable for Google & co; Samsung obviously excepted. So far it's nothing but a money sink for Google; nebulous backdoor 'moat' theories notwithstanding.
 
Sony's smartphone business had a profit, as did LG, HTC (shrinking though), Samsung and I think the chinese makers are doing well also. I think it's only really Motorola not making a profit, point is a lot of the android manufacturers are actually profitable, just not on the same level as Samsung
 
Nexus4 looks great; I'm seriously making plans to get one. In fact the Nexus devices are pretty much coming to dominate the face of Android. Nexus7 is the best 7 incher, Nexus10 is the best 10 incher, and Nexus4 is.. well if not the best, at least the best priced smartphone on the market for the specifications.

Here is Chris Pirillo from Lockergnome's review of the Nexus 4 (and he is a huge Apple fan) :

[video=youtube;jqHOcwzT5eY]http://www.youtube.com/watch?v=jqHOcwzT5eY[/video]
 
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Here is Chris Pirillo from Lockergnome's review of the Nexus 4 (and he is a huge Apple fan) :

[video=youtube;jqHOcwzT5eY]http://www.youtube.com/watch?v=jqHOcwzT5eY[/video]

Yeah lol he's pretty ecstatic about it. TBH I felt quite the same about the Nexus7. Fantastic piece of equipment.
 
Just out of interest, I'd like to hear what everyone's average monthly spend is within the respective App stores (Google, Amazon & Apple). We know that Amazon had good revenue growth in Q3, but still had an operating loss (ignoring the net income loss), and are cautious about Q4 (good revenue again, but they aren't sure if they'll have an operating income loss or profit - but this also encompasses their vast catalogue, they don't always give specifics.

I'm not looking for show boating and inter-device flaming - be mature and just give an idea of how much you spend, on average, in the relevant App store.

For me, it varies between R60-R100 per month, but that is just Apps. I only buy music occasionally (because I don't listen to a lot of music - not because I get it, ahem, elsewhere), and I haven't ventured into buying or renting TV Shows and Movies yet.
 
Just out of interest, I'd like to hear what everyone's average monthly spend is within the respective App stores (Google, Amazon & Apple). We know that Amazon had good revenue growth in Q3, but still had an operating loss (ignoring the net income loss), and are cautious about Q4 (good revenue again, but they aren't sure if they'll have an operating income loss or profit - but this also encompasses their vast catalogue, they don't always give specifics.

I'm not looking for show boating and inter-device flaming - be mature and just give an idea of how much you spend, on average, in the relevant App store.

For me, it varies between R60-R100 per month, but that is just Apps. I only buy music occasionally (because I don't listen to a lot of music - not because I get it, ahem, elsewhere), and I haven't ventured into buying or renting TV Shows and Movies yet.

I use to buy a lot of applications, but it kind have slowed down to a point where I might spend $1 in a month if that much. This goes for both Android and iOS. What I do do now is watch the bargain lists, like free app of the day.

I wish there was a way I could telly up my account like Steam and SteamCalculator. I am sure my Android account is worth well over R4000.00 as for iOS I recon about R2000.00. (This is for close to 48 months)
 
My spending on apps have come down substantially, and more specifically after I jumped from iPad to Android tablets. I own a truckload of apps on iOS, mostly bought out of curiosity and never used. With Android most of the stuff I actually need is free. I bought things like Tapatalk and Touchdown on Android but very little else. One gets over the app buying craving on any of the platforms after a while a realise you actually need a few things on an ongoing basis. That is why I am of the opinion that with a small app store but with high quality must-have apps a player like RIM still has a future (and may cause a few surprises/upsets). In the end one need very few apps to make good use of a tablet/phone. The quality is what matters.
 
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